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FTC : Problems with Internet shopping malls abound

Posted November. 07, 2000 19:11,   

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One out of every four Internet shopping malls is causing consumers problems due to the difficult cancellation process after ordering products.

The Fair Trade Commission (FTC) made a study of 380 Internet shopping malls with the Cyber Consumer Association that showed 23.7% did not have clearly defined cancellation functions. Around 31% did not mention cancellation in their Articles of Association or did not have an Article of Association while 30% did not provide their addresses. Out of the 302 membership malls, 60.9% did not have membership termination processes. The FTC revealed that 74 Internet malls had made illegal advertisements and will soon levy correctional orders.

The Cyber Consumer Association, made up of 51 civic groups, visited the Internet malls to determine whether they had been adhering to e-commerce consumer protection guidelines. A report was provided to the FTC through the Internet.